Coca-Cola raised its annual organic sales and profit forecasts on Tuesday, signaling consumers are willing to spend more for the beverage giant's higher-priced sodas, energy drinks and juices mainly in international markets.
The company's shares rose nearly 1% in premarket trading as the company also posted a surprise increase in quarterly revenue.
Coca-Cola has been foraying into newer regions in Asia and Europe to keep its revenue growth intact and launching reformulated versions of its drinks such as Coke Spiced and Georgia Coffee in markets that are quickly turning price-sensitive.
The company's average selling price rose 9% in the second quarter, the Sprite maker said, while unit case volumes increased 2%.
However, Coca-Cola saw volumes in the North America region fall by 1% as consumers continue to be cautious with their spending.
PepsiCo CEO Ramon Laguarta said in July that there is "much more price sensitivity" across U.S. income groups and not just low-income consumers.
New York-based rival PepsiCo missed second-quarter revenue estimates as frequent price hikes and competition from private-label brands resulted in falling sales of its snacks and soda mainly in the United States.
Coca-Cola forecast fiscal 2024 organic sales to grow between 9% and 10%, compared with its previous expectation of an 8% to 9% rise.
The company expects fiscal 2024 adjusted profit to increase between 5% and 6%, compared with its previous forecast of a 4% to 5% rise.
Coca-Cola's second-quarter net revenue rose 2.9% to $12.31 billion beating LSEG estimates of $11.76 billion.
On an adjusted basis, the company earned 84 cents per share, compared with estimates of 81 cents.
